Revenue jumped 41.92% QoQ, but costs outpaced growth and margin slipped
Consolidated net profit rose 29.86%, while a higher 35.45% tax rate limited conversion of pre-tax gains.
Filed 05 Nov 2026, 18:18 IST · after market close · Dev Information Technology Ltd (DEVIT)
Key takeaways
- Consolidated revenue grew +41.92% QoQ to Rs 62.63 cr, but operating margin narrowed 0.27 percentage points to 7.60% as expenses grew +42.33%.
- Net profit rose +29.86% QoQ to Rs 2.74 cr, lagging pre-tax profit growth as the tax rate climbed 12.60 percentage points to 35.45%.
- At 7.60%, operating margin was 8.75 percentage points below the 16.35% median for 69 reported IT peers.
Price around the results
Revenue accelerated, but operating leverage weakened
Dev Information Technology reported consolidated revenue growth of +41.92% QoQ, while operating profit grew more slowly at +37.18%. Expenses increased +42.33%, outpacing revenue and narrowing operating margin by 0.27 percentage points to 7.60%.
Higher tax rate diluted profit conversion
Pre-tax profit grew +55.31% QoQ, helped by a -16.67% decline in interest costs. However, the tax rate rose 12.60 percentage points to 35.45%, limiting net profit growth to +29.86%. Other income accounted for 10.61% of pre-tax profit, providing a modest non-operating contribution.
Operating margin trails the IT peer median
The company's 7.60% operating margin was 8.75 percentage points below the 16.35% median among 69 IT peers that had reported the quarter. It ranked 13th from the bottom on this measure, placing cost control and margin recovery ahead of revenue growth as the key operating markers.
Results filed after market close
The consolidated results were filed after market close on 05 Nov 2026. The stock's immediate response had therefore not yet emerged.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹63 cr | ₹44 cr | +41.92% |
| Other income | ₹0 cr | ₹0 cr | +18.42% |
| Expenses | ₹58 cr | ₹41 cr | +42.33% |
| Operating profit | ₹5 cr | ₹3 cr | +37.18% |
| Operating margin (%) | 7.60% | 7.87% | — |
| Interest | ₹1 cr | ₹1 cr | -16.67% |
| Depreciation | ₹0 cr | ₹0 cr | -7.69% |
| Profit before tax | ₹4 cr | ₹3 cr | +55.31% |
| Tax | ₹2 cr | ₹1 cr | +141.94% |
| Net profit | ₹3 cr | ₹2 cr | +29.86% |
| EPS (₹) | ₹0.52 | ₹0.37 | +40.54% |
Operating margin of 7.60% compares with a Information Technology sector median of 16.35% across 69 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.25% | -3.26% |
| Next session | -0.91% | — |
Volume on the results session was 0.52× its 20-day average.
What to watch
- Whether operating margin recovers from 7.60% after the 0.27 percentage-point QoQ decline.
- Whether expense growth stays below the +41.92% revenue growth rate.
- Whether the tax rate moves back from 35.45% toward Q1FY27's 22.85%.